Interlink Roads Pty Limited, which operates the M5 South West Motorway has reached financial close on a A$742 million refinancing of its senior secured debt facilities.

The new facility has been provided by Australia and New Zealand Banking Group Limited, Bank of America Merrill Lynch, The Bank of Tokyo-Mitsubishi UFJ Ltd, Canadian Imperial Bank of Commerce, Commonwealth Bank of Australia, ING Bank (Australia) Ltd and Westpac Banking Corporation.

The new $742 million facility (includes $15 million of standby and overdraft facilities) will have maturities of 5.5 years ($272 million), 7.5 years ($180 million) and 10 years ($275 million) and will be subject to amortisation resulting in full repayment of the debt at the end of its term. The refinancing has extended Interlink's average debt maturity profile to over 6 years and will also deliver immediate cost savings, with the weighted average cost of the new facility (after hedging) being 4.4%.

Opened in August 1992, the M5 South-West Motorway is a free flowing transit corridor spanning 22 km of Sydney's south west from Prestons to Beverly Hills. The motorway was widened in a project that started in June 2012 and finished in December 2014.  An additional lane in each direction has delivered better and more reliable travel times, and an even safer trip.

The M5 South-West Motorway (excluding the the Georges River west bridges) is operated and developed by Interlink Roads under a lease that expires on 10 December 2026. Interlink Roads' shareholders, Transurban, Hastings Funds Management, AMP Capital and Industry Funds Management.

Transurban CFO Adam Watson stated:

"We are pleased that Interlink has been able to execute this transaction at attractive terms, with a range of long dated tenors that meet our capital management strategic objectives. The transaction reflects the ongoing confidence the debt market has in Transurban's portfolio of high quality assets."